Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2009 B.B.A BB0012 – Management Accounting - Assignment s for spring session - Question Paper

Manufacturing wages and expenses:
Process I Rs.41216
Process II Rs.25120
Process III Rs.23160
Prepare process accounts showing the cost per ton of every product

5.A company is considering expansion. Fixed costs amount to Rs. 420000 and are expected to increase by Rs. 1,25,000 when plant expansion is completed. The current plant capacity is 80,000 units a year. Capacity will increase by 50% with the expansion. Variable costs are currently Rs.6.80 per unit and are expected to go down by Rs.0.40 per unit with the expansion. The current selling price is Rs.16 per unit and is expected to remain identical under either option. elaborate the break-even points under either alternative? Which option is better and why?

6.What are the objectives of budgetary control? define the process of budgetary control.



ASSIGNMENT
BBA-Semester 3
BB0012
CREDITS: 4
60 MARKS
SUBJECT: MANAGEMENT ACCOUNTING
SET II
ans all the questions:
1.A) What is the concept of ‘funds’? Why is Cash flow statement prepared? (5 Marks)
B) Hiran, a retailer, has prepared the subsequent balance sheets for the yers ending 31st March 2004 and 2005:
Balance Sheets as on 31st March, 2004 and 2005
Particulars
2004


2005
Freehold property at cost
200000


200000
Furniture 32000
Less depreciation 23200

8000

30000
20000

10000
Current Assets:
Stock
Debtors and prepayments
Cash in hand and at bank

36000
50000
4000



34000
34000
2000
Liabilities:
Capital
Trade and accrued expenses
Loan account

254800
24000
20000



260000
20000
-------
Total
298800


280000
Other data: The net profit for the year 2004 was Rs.40000. Hiran is paid a salary of Rs.16,000. His drawings amounted to Rs.45,200.
You are needed to prepare a statement of modifications in financial position, on working capital basis. ( five Marks)

2.From the subsequent details, prepare the balance sheet of the firm concerned.
Stock velocity 6
Capital turnover ratio 2
Fixed asset turnover ratio 4
Gross profit 20%
Debt collection period 2 months
Creditors payment period 73 days
The gross profit was Rs.60000. Closing stock was Rs.5000 in excess of the opening stock. (10 Marks)

3.The subsequent data have been extracted from the books of M/s Moonshine Industries for the calendar year 2006. Rs Rs.
Opening stock of raw materials 25,000 Purchase of raw materials 85,000
Closing stock of raw materials 40,000 Carriage inwards 5,000
Wages-Direct 75000
Indirect 10000 85,000 Other direct charges 15,000
Rent and rates (Factory) 5,000 Rent and rates (office) 500
Indirect consumption materials 500 Depreciation- Plant 1,500
Depreciation-office furniture 100 Salary-office 2,500
Salary- salesman 2,000 Other factory expenses 5,700
Other office expenses 900 MD’s remuneration 12,000
Travelling expenses of salesmen 1,100 Other selling expenses 1,000
Sales 250000 Advance Income tax paid 15,000
Advertisement 2,000
MD’s remuneration is to be allocated as Rs.4000 to the factory, Rs.2,000to the office and Rs.6,000 to the selling departments. From the above information, prepare a) Prime cost b) Works cost c) cost of production d) cost of sales and e) Net profit. (10 Marks)

4.From the subsequent information, obtain the profit made by every product apportioning joint costs on sales-value basis: (10 Marks)
Joint costs:
Direct Material Rs.1,26,000
Power Rs. 25,000
Petro, oil, lubricants Rs. 5,000
Labour Rs. 7,500
Other charges Rs. 4,100
Product x Product y
Selling costs Rs.20,000 Rs.80,000
Sales Rs.152000 Rs.168000

5.A) A factory is manufacturing sewing machines. The variable cost of every machine is Rs.200 and every machine is sold for Rs.250. Fixed costs are Rs.12000. compute the BEP for output.
B) compute breakeven point and margin of safety. Fixed cost Rs.1,60,000. Variable cost per unit Rs.2 and Selling price per unit Rs.18. Also calculate the margin of safety if the company is earning a profit of Rs.36,000.
C) compute the break-even point and turnover needed to earn a profit of Rs.3,600. Fixed overheads Rs.1,80,000. Variable cost per unit Rs. Selling price Rs.20. If the company is earning a profit of Rs.36,000, express the margin of safety available to it.
{ (3+4+ three )=10 Marks}
6.Describe the advantages and limitations of budgetary control. (10 Marks)
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Earning:   Approval pending.